MASSACHUSETTS REAL ESTATE
SALESPERSON LICENSE EXAM
QUESTIONS AND ANSWERS. VERIFIED
2026.
RE Salesperson License requirements? - ANS 18 years old, 40 hour class, pass the exam, must
affiliate with a broker to practice and may not accept direct client payments
Broker's License requirements? - ANS 3 years salesperson experience, 40 hour class, pass the
exam, $5,000 bond and pay a fee.
What is MLS? - ANS Multiple Listing Service. It's a marketing tool used by Salespeople to
show their listings.
Difference between RE Salesperson and RE Broker? - ANS Salesperson works for a Broker.
Broker has at least 3 years experience, $5,000 Bond, 40 Hour Class and pass the Exam. Cannot
hold both licenses at the same time. Broker can operate independently, accept direct client
payments and handle Escrow Funds.
Define Realtor? - ANS It is National, not state and is optional. NAR (National Assoc. of
Realtors) Largest Trade Assoc. and one of the most powerful lobbying groups in North America.
Pay a fee to join your local chapter (MAR).
Also, if a Broker is a Realtor, all Salespeople/Agents associated with the office must be Realtors
as well.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is an Escrow Fund/Trust Accounts? - ANS 1. Special bank accounts for holding Client's
deposits to be handled by Broker only. 2. Brokers may have only one Escrow account.
3. Commingling is strictly forbidden.
4. No Salesperson Access.
5. Interest not mandatory but if yes the client must agree who gets it in writing. (Statute of
Fraud)
6. Brokers must maintain Escrow Records (copies of checks, dates, transaction info) for 3 years
which the RE Board may inspect at any time.
7. Conversion of a deposit into commission requires written permission from both parties. If
not, can result in loss of license.
8. Court order needed to remove funds if there is a dispute.
State Law -v- Federal Law? - ANS Fed=US/State=Massachusetts State law builds on Fed law
and is more specific. In a conflict, Fed law usually wins.
Who needs a RE License? - ANS Anyone who does any of the following for a fee: Advertises,
holds herself out as engaged in the biz of selling, renting, leasing, negotiation, exchanging,
purchasing and dealing in RE or options for RE.
Where do licenses come from? - ANS State Legislature creates the laws about licenses. The
Board of Registration of RE & Salespersons deals with issuing licenses and rule administration
and enforcement. The Board is part of the Division of Professional Licensure.
Why do we have licenses? - ANS To protect the public, for the public good. Much of the
Government's ability to regulate private transactions stems from Police Power which is the right
of the Gov to enact laws to protect the public.
Who makes up the Board of Registration of RE & Salespersons? - ANS - 5 Member Board est.
in 1960
- Appointed by the Governor
- One is appointed Chairperson
- 3 are Brokers with at least 7 years experience
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,- 2 are not licensed, represent the public
- 5 year terms, no pay
- Meet 4 times a year with at least 3 of the Members present. Written records of meetings are
available to the public on Division of Pro Licensure's website
1099 -v- W2 Employee? - ANS 1099=Independent Contractor, paid by job or commission, set
own hours, can turn down work, etc, no taxes withheld, but may take many write-offs (Many
Residential RE Agents)
W2=Salaried of paid hourly, employer controls what and how you do (Commercial RE Agents),
taxes withheld by employers
What is FSBO? - ANS For Sale by Owner
Types of RE Advertising? - ANS MLS, Open House, Trulia, Zillow, Neighbors, etc.
Define Qualified Buyer? - ANS Client who is ready, willing and able!
What is the average commission? - ANS NONE - ALWAYS NEGOTIABLE!!!!!
What is the basic RE Transaction? - ANS - Hired to list property
- Market/list on MLS, etc
- Buyer's contact you to see
- Show the property
- Offer submitted
- Inspection
- Contingencies
- Creation and signing of P&S, 5% of Sales Price is Deposited in Escrow Account. Finance
Contingencies apply here as well.
- Sale takes place (settlement/closing)
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, - You and buyer's agent will be paid
- Approximately 3-6 months average time
Rental commissions? - ANS Up to one month's rent
How often are RE Licenses renewed? - ANS 2 years from you next birthday. 12 hours of
Continuing Ed Classes must be completed before renewal.
What are the two types of Insurance carried by Brokers? - ANS Professional Liability
Insurance (errors and omissions insurance)-Provides protection against mistakes made by
Brokers or Salespersons providing RE Services to their clients. Human and Innocent mistakes
happen...
General Liability Insurance
Principal, Special Agent, Subagent? - ANS Principal=Client, hires Special Agent
Special Agent=Broker, hired and paid by Principal directly
Subagent(Agent's Agent)=Salesperson/Agent Broker pays you as a subagent working on their
behalf. You will be client's subagent and the Broker's agent
What is Real Property? - ANS The land, anything attached to the land, and all of the various
rights associated with ownership of the land. aka: Real Estate(just the land and property
attached) , Realty or Immovable Property.
What is Personal Property? - ANS Anything not attached to the Land or improvements on the
land. aka chattel or moveable property.
What is a Deed? - ANS Receipt for Real Estate. Ownership of property is
transferred/conveyed using a deed.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
SALESPERSON LICENSE EXAM
QUESTIONS AND ANSWERS. VERIFIED
2026.
RE Salesperson License requirements? - ANS 18 years old, 40 hour class, pass the exam, must
affiliate with a broker to practice and may not accept direct client payments
Broker's License requirements? - ANS 3 years salesperson experience, 40 hour class, pass the
exam, $5,000 bond and pay a fee.
What is MLS? - ANS Multiple Listing Service. It's a marketing tool used by Salespeople to
show their listings.
Difference between RE Salesperson and RE Broker? - ANS Salesperson works for a Broker.
Broker has at least 3 years experience, $5,000 Bond, 40 Hour Class and pass the Exam. Cannot
hold both licenses at the same time. Broker can operate independently, accept direct client
payments and handle Escrow Funds.
Define Realtor? - ANS It is National, not state and is optional. NAR (National Assoc. of
Realtors) Largest Trade Assoc. and one of the most powerful lobbying groups in North America.
Pay a fee to join your local chapter (MAR).
Also, if a Broker is a Realtor, all Salespeople/Agents associated with the office must be Realtors
as well.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is an Escrow Fund/Trust Accounts? - ANS 1. Special bank accounts for holding Client's
deposits to be handled by Broker only. 2. Brokers may have only one Escrow account.
3. Commingling is strictly forbidden.
4. No Salesperson Access.
5. Interest not mandatory but if yes the client must agree who gets it in writing. (Statute of
Fraud)
6. Brokers must maintain Escrow Records (copies of checks, dates, transaction info) for 3 years
which the RE Board may inspect at any time.
7. Conversion of a deposit into commission requires written permission from both parties. If
not, can result in loss of license.
8. Court order needed to remove funds if there is a dispute.
State Law -v- Federal Law? - ANS Fed=US/State=Massachusetts State law builds on Fed law
and is more specific. In a conflict, Fed law usually wins.
Who needs a RE License? - ANS Anyone who does any of the following for a fee: Advertises,
holds herself out as engaged in the biz of selling, renting, leasing, negotiation, exchanging,
purchasing and dealing in RE or options for RE.
Where do licenses come from? - ANS State Legislature creates the laws about licenses. The
Board of Registration of RE & Salespersons deals with issuing licenses and rule administration
and enforcement. The Board is part of the Division of Professional Licensure.
Why do we have licenses? - ANS To protect the public, for the public good. Much of the
Government's ability to regulate private transactions stems from Police Power which is the right
of the Gov to enact laws to protect the public.
Who makes up the Board of Registration of RE & Salespersons? - ANS - 5 Member Board est.
in 1960
- Appointed by the Governor
- One is appointed Chairperson
- 3 are Brokers with at least 7 years experience
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,- 2 are not licensed, represent the public
- 5 year terms, no pay
- Meet 4 times a year with at least 3 of the Members present. Written records of meetings are
available to the public on Division of Pro Licensure's website
1099 -v- W2 Employee? - ANS 1099=Independent Contractor, paid by job or commission, set
own hours, can turn down work, etc, no taxes withheld, but may take many write-offs (Many
Residential RE Agents)
W2=Salaried of paid hourly, employer controls what and how you do (Commercial RE Agents),
taxes withheld by employers
What is FSBO? - ANS For Sale by Owner
Types of RE Advertising? - ANS MLS, Open House, Trulia, Zillow, Neighbors, etc.
Define Qualified Buyer? - ANS Client who is ready, willing and able!
What is the average commission? - ANS NONE - ALWAYS NEGOTIABLE!!!!!
What is the basic RE Transaction? - ANS - Hired to list property
- Market/list on MLS, etc
- Buyer's contact you to see
- Show the property
- Offer submitted
- Inspection
- Contingencies
- Creation and signing of P&S, 5% of Sales Price is Deposited in Escrow Account. Finance
Contingencies apply here as well.
- Sale takes place (settlement/closing)
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, - You and buyer's agent will be paid
- Approximately 3-6 months average time
Rental commissions? - ANS Up to one month's rent
How often are RE Licenses renewed? - ANS 2 years from you next birthday. 12 hours of
Continuing Ed Classes must be completed before renewal.
What are the two types of Insurance carried by Brokers? - ANS Professional Liability
Insurance (errors and omissions insurance)-Provides protection against mistakes made by
Brokers or Salespersons providing RE Services to their clients. Human and Innocent mistakes
happen...
General Liability Insurance
Principal, Special Agent, Subagent? - ANS Principal=Client, hires Special Agent
Special Agent=Broker, hired and paid by Principal directly
Subagent(Agent's Agent)=Salesperson/Agent Broker pays you as a subagent working on their
behalf. You will be client's subagent and the Broker's agent
What is Real Property? - ANS The land, anything attached to the land, and all of the various
rights associated with ownership of the land. aka: Real Estate(just the land and property
attached) , Realty or Immovable Property.
What is Personal Property? - ANS Anything not attached to the Land or improvements on the
land. aka chattel or moveable property.
What is a Deed? - ANS Receipt for Real Estate. Ownership of property is
transferred/conveyed using a deed.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
